Consumers focusing on quality, research reveals

The latest IGD Shopper Confidence Index reveals consumer focus on quality (18%), rather than saving money (14%), in the year ahead is at the highest level recorded.

The data shows consumer confidence remains at its highest level in more than a year, driven by the easing of lockdown restrictions, the vaccination programme, and a focus on Easter.

However, shopper sentiment is becoming increasingly polarised between income groups and the expected recovery will see some shoppers grow in prosperity, while others are left behind or stay the same.

The data show shopper confidence remained stable at -4, which is the highest level since January 2020, compared to -9 this time last year at the start of the pandemic.

During March, shopper confidence improved to -2 at the end of the month as the focus turned to family gatherings over Easter and restrictions began to ease.

Confidence is rising in the Midlands and North England, but declining in London and Scotland, the data shows.

Simon Wainwright, director of Global Insight at IGD, said: “The focus on quality provides grocery retailers with an opportunity to encourage shoppers to trade up. This underlines the need to continue to invest in NPD and innovation to maintain and gain market share from the more affluent shopper.

“But, as we head into a K-shaped recovery, saving money remains a top priority for lower-income households. Due to Covid-19, only 28% of lower-paid workers on furlough reported receiving their full wage compared to 52% of higher-paid workers. With unemployment not set to peak until the fourth quarter 2021, before declining slowly, savvy shopping is likely to be a key behaviour for those shoppers most adversely affected, particularly those aged 18-24.”